You Try to Explain the Number of IBM Shares Traded

question 31

Multiple Choice

You try to explain the number of IBM shares traded in the stock market per day in 2005. As an independent variable you choose the closing price of the share. This is an example of

• A)simultaneous causality.
• B)invalid inference due to a small sample size.
• C)sample selection bias since you should analyze more than one stock.
• D)a situation where homoskedasticity-only standard errors should be used since you only analyze one company.

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Definitions:

Authentic Intention

A genuine and true purpose or aim behind an action, reflecting an individual's sincerity and honesty in their objectives or desires.

Circuitous

Not direct or straightforward; involving a longer route or process than necessary.

Recursive

A process or function that calls itself directly or indirectly, commonly used in computer programming and mathematics.

Technological Competency

Skill and knowledge in using and adapting technology tools and resources to accomplish tasks efficiently and effectively, with a focus on continual learning.